Does anyone know how I should clear my suspense account of all the opening balances that I posted? I've started working for a sole trader whose accounts were done manually previously and I'm currently working without the accountants opening balances for the new fin yr I am working on.
When I posted a payment to a creditor that related to the previous fin. yr I created a supplier and posted the necessary opening balance - this would then debit the suspense a/c. And likewise for debtors but obviously it would credit suspense.
Likewise for the bank accounts opening balances - it dr the bank and cr suspense....
Sorry to be clueless! Can anybody help please....?
You've been posting opening balances for accounts when you have needed these for current year transactions?
You didn't just post all of the opening balances... so if they were done to suspense this would have been cleared anyway?
All the debits and credits should equal for the previous year (unless something is seriously wrong)... so you just need to make sure ALL opening balances are posted and it should be cleared.
From the post my understanding is that you don't have the opening balances and when (for example) paying an invoice that relates to the previous year you are using this to create an opening balance. You'll never be able to get the opening balances correct doing this, how do you know this invoice was entered or accrued for last year. The entry for the payment would be credit bank debit creditor a/c, I wouldn't from this post an entry assuming this was part of the opening balances. (credit creditor a/c debit suspense).
You must get the opening balances from the accountant, when you post these the suspense would be clear. Then from this you can start on this years numbers.
Many thanks to you both for your replies. I think the best thing would be to wait for the accountant's opening balances to see if we agree - my thought process is that if a sales invoice is raised in the last month of the Fin Yr but not paid until the new Fin Yr then this will be the opening balance. Same for purchase invoices received in the last month of the Fin Yr but not paid until the new Fin Yr.
When I created the customer or supplier I entered their o/b when I created their record. i.e. for a SI this would CR suspense and DR debtor control. To now clear the suspense a/c of this value do I then DR suspense and CR debtor? As long as my opening balances for customers and suppliers agree with the accountant then am I right in thinking this will both clear out my suspense account and correct the debtor and creditor control accounts for the new financial year?
Could anyone help me and give some advice whats the best way to clear the very high amount on suspense account please.
I still have 2012-13 year open on sage line 50,i haven`t done year end yet. I`m working to a difficult company always many problems here and the company accountants never help me just for extra money what`s the directors of company doesnt want to pay for anything..., so normally I`m staying with the problems on my own ,no support what so ever, very annoying..
She told me as below what should happen before I had started with this company, but she didnt send me the journals how I`m able to sort this all mess out:
``Essentially what need to happen in relation to the accounts for the year end is firstly bring in opening balance completely ,smooth there with the included O/B, and finally to work on clearing the remaining transactions in suspense a/c.
When sage was opened these balances should have been put in as opening balances via the customer and supplier new accounts wizard but they weren't.
She would suggest going through the transactions showing as O/B and changing the date from Apr. 2012 to Marc 2011 she is thinking this going to make them show as balances B/F. then do a journals ..``
Im not sure why should I change it to 2011 instead if 2012 year beginning, what its shows now..
I just saw Sandra`s post. I have the same problem , all opening balance from last year ended at the suspense account. I never done year end before on sage so Im not sure where should be posted or allocated from the suspense to clearing the opening balance from there.
Maybe anyone else can advice for the best solutions!?
